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here is the J-Powell trade=The last 3 FOMC meetings have seen huge rallies only to be followed by massive dumps on Thursday.

Posted by Richard640 @ 22:57 on July 27, 2022  

https://wolfstreet.com/2022/07/27/powell-puts-75-basis-point-hike-on-table-for-sept-fed-determined-to-get-inflation-down-come-heck-or-high-water-most-hawkish-fomc-press-conference-i-ever-watched/


  1. Jackson Y
    Jul 27, 2022 at 6:05 pm

    It sounded hawkish to me too, but Wall Street liked it. Or maybe it was just a short squeeze. The last 3 FOMC meetings have seen huge rallies only to be followed by massive dumps on Thursday.

    Reply
  2. Arya Stark
    Jul 27, 2022 at 6:14 pm

    It was so hawkish that yields dropped and assets rocketed higher. Can you imagine if he actually raised rates a meaningful amount? Everything would have been limit up.

    Please share whatever you’re smoking!

    Reply
    • Wolf Richter
      Jul 27, 2022 at 6:23 pm

      Arya Stark,

      Hahahaha, you’re part of the problem that Powell is trying to stamp out. You people don’t get it: the more markets fight the Fed, the more the Fed has to hike rates because it’s through the markets that the Fed transmits its monetary policies to financial conditions, and tightening financial conditions are what lowers demand, which is what tamps down on inflation.

      The longer markets fight this, the higher rates will be going.

      Also, here is the J-Pow trade.

      It worked twice in a row already. And now we’re doing it for the third time. We need confirmation tomorrow.

      I described the J-Pow trade last time:

      1. go long at the end of the day before the FOMC meeting to cash in on the Powell ramp-up.
      2. sell during the press conference
      3. go short at the end of the press conference to cash in on the drop at the end of the day and on the big dive the next day.

      Happened exactly that way the last two times. Waiting for confirmation tomorrow. It would be a hoot to have this confirmed.

      https://wolfstreet.com/2022/06/16/morning-after-j-pow-second-time-in-a-row/

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Post by the Golden Rule. Oasis not responsible for content/accuracy of posts. DYODD.